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TD downgrades Akamai to Hold on growth deceleration

TD downgrades Akamai to Hold on growth deceleration

TD Cowen downgraded Akamai (AKAM) to Hold from Buy with a price target of $98, down from $125. The company lowered its long-term revenue growth guidance across all segments, lowered its long-term operating margin outlook and raised its long-term capex guide, the analyst tells investors in a research note. The firm says this deceleration, coupled with Akamai’s go-to-market transformation, “creates a greater degree of execution risk to the story.” In addition, TD continues to question the company’s right to win in cloud.

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